Elazig Health

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The project is to design, finance, construct and provide certain services for the Elazig Integrated Health Campus (“Elazig IHC” or “the project”) located in Elazig, a second tier city in Eastern Turkey with a population of about 412 thousand inhabitants. Total project cost is estimated at US$ 448 million. The project is one of the Public Private Partnerships in the Turkish healthcare sector and is part of the Ministry of Health’s (MoH) Health transformation program aiming to (i) renovate the insufficient healthcare infrastructure that is unable to meet the increasing healthcare demands, (ii) consolidate small state-owned hospitals under one campus, and (iii) increase service quality and efficiency in state-owned hospitals. The project is being developed by a Special Purpose Vehicle called ELZ Saglik Yatirim A.S. (“ELZ Saglik” or “the company”), which is a newly established consortium (“the project sponsors”) comprising of Ronesans Holding A.S, Meridiam Infrastructure Eastern Europe SARL, Sam Yapi Sanayi ve Ticaret Ltd. Sti., and Sila Danismanlik Saglik Bilisim Insaat Ticaret A.S.. Ronesans Medikal Insaat A.S. (RMI), a subsidiary of Ronesans Holding, will be responsible for the construction phase. The Elazig IHC will cover around 23 hectares (ha), including closed car parking area, with a hospital area of 16 ha. There are no residential areas adjacent to the project site. The campus will have a 1,038-bed capacity consisting of 888-bed general hospital, 150-bed high security forensic psychiatric hospital, and 60 unit oral and dental clinic. There will also be health support facilities, a commercial area, a technical unit building, a helipad and a 7.7 ha car parking area. A tri-generation plant, consisting of three natural gas engines, and boiler system will supply energy for the project. The planned construction period is three years, to be followed by an operational period of 25 years. As part of the project, ELZ Saglik will provide support to clinical services including laboratories, imaging, sterilization and disinfection and rehabilitation during the operating period while MoH will provide the core medical services. The project site is a vacant land plot in the Ulukent neighborhood, designated by the Elazig Municipality as a “public area requiring large land use” and has already been allocated to Ministry of Health (MoH). The site was under the ownership of the Turkish Treasury Department except for a small, 250 m2 plot that once included a small military cemetery consisting of eight unmarked graves. The cemetery was under the responsibility of the 8th Army Corps Commandership and the eight graves have recently been transferred to another cemetery in Elazig following the approval of relevant institutions. The plot is being transferred to MoH.